









Daniel Nunan
David
Naresh



Daniel Nunan
David
Naresh
Working as a marketing researcher remains an intellectually stimulating, creative and rewarding career. Marketing research is a huge and growing industry at the forefront of innovation in many sectors of the economy. However, few industries can have been presented with as many challenges and opportunities as those faced by marketing research due to the growing amounts of data generated by modern technology.
Founded upon the enormously successful US edition, and building upon the previous five European editions, the sixth edition of this book seeks to maintain its position as the leading marketing research text, focused on the key challenges facing marketing research in a European context. As with previous editions, this aims to be comprehensive, authoritative and applied. As a result, the book covers all the topics in previous editions while including updates that reflect the changes and challenges that have impacted the marketing research sector since the fifth edition was published. This includes the impact of new technologies, the growth of ‘insight’ and the shifting role of research ethics, for example, through considering the impact of GDPR. This edition has been significantly updated, with new content, updated cases studies and a major focus on the issues and methods generated by new technologies.
If you take advantage of the following special features, you should find this text engaging, thought provoking and even fun:
1 Balanced orientation. This book contains a blend of scholarship and a highly applied and managerial orientation, showing how researchers apply concepts
and techniques and how managers use their findings to improve marketing practice. In each chapter, we discuss real marketing research challenges to support a great breadth of marketing decisions.
2 Real-life examples. Real-life examples (‘Real research’ boxes) describe the kind of marketing research that companies use to address specific managerial problems and how they implement research to great effect.
3 Hands-on approach. You will find more real-life scenarios and exercises in every chapter. The end-ofchapter exercises challenge you to research online and role play as a researcher and a marketing manager. You can tackle real-life marketing situations in which you assume the role of a consultant and recommend research and marketing management decisions.
4 International focus. Reflecting the increasingly globalised nature of marketing research, the book contains examples and cases from around the world and embeds key cross-cultural issues within the wider discussion of research techniques and methods.
5 Contemporary focus. We apply marketing research to current challenges, such as customer value, experiential marketing, satisfaction, loyalty, customer equity, brand equity and management, innovation, entrepreneurship, relationship marketing, creativity and design and socially responsible marketing.
6 Instructor’s manual. The Instructor’s manual is very closely tied to the text, but is not prescriptive in how the material should be handled in the classroom. The manual offers teaching suggestions, answers to endof-chapter questions, discussion points. The manual includes PowerPoint slides, incorporating key figures and tables.
Text credits:
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(London: Sage, 2002); 272 Centaur Media plc: Rines, S., ‘Brands fall short of their goal’, Marketing Week, (16 June 2005); 277 John Attfield: John Attfield of RMM Marketing Research International; 302 WARC: Farris, P.W., ‘Overcontrol in advertising experiments’, Journal of Advertising Research (November/December 2000), 73–8; 316 SAGE Publications: Huertas-Garcia, R. and Consolación-Segura, C., ‘Using statistical design experiment methodologies to identify customers’ needs’, International Journal of Market Research 51 (1) (2009), 115–36; 327 Lord Kelvin: Lord Kelvin; 376 WARC: Fairfield, A., ‘Doing the right thing is a brand communicator’s imperative’, Admap 504 (April 2009), 32–5; 405–406 ESOMAR: Kellner, P., ‘Down with random samples’, ResearchWorld, (May 2009) p.31; 406 ESOMAR: Scheffler, H., Zelin, A. and Smith, P., ‘Down with random sampling?’, ResearchWorld (November 2007), 44–5; 429 ESOMAR: García-González, J., ‘How to avoid the pitfalls of multi-country research’, ESOMAR Latin America Conference, Buenos Aires (September 2005); 437 Taylor & Francis Group: Sung, Y., de Gregorio, F. and Jung, J. 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Available at: https://www.mrs.org.uk/ijmr_blog_archive/blog/1592, accessed 7 March 2017; 476 Kim Bradford Smith: Kim Bradford Smith; 484 Jack Dorsey: Jack Dorsey; 485–486 ESOMAR: Cierpicki, S., Cape, P., Lewis, A., Poynter, R. and Viera, S., ‘What does research 2.0 mean to consumers in Asia Pacific?’ ESOMAR Asia Pacific Conference, Beijing (April 2009); 487 SAGE Publications: Dahl, S., Social Media Marketing. (SAGE: London, 2014); 498 EBSCO Publishing: Swan, C., ‘Gamification: A new way to shape behavior’, Communication World 29 (3), (2012), 13–14; 498 The ICG: ‘Four types of gamification that can be used in market research’, http://theicg. co.uk/opinion/6000072/four-types-of-gamification-that-can-be-used-in-market-research, accessed 29 April 2016; 498 SAGE Publications: Bailey, P., Pritchard, G. and Kernohan, H., ‘Gamification in market research: Increasing enjoyment, participant engagement and richness of data, but what of data validity?’, International Journal of Market Research 57 (1), (2015), 17–28; 507 Adweek, LLC: Heine, C., ‘Are tablets just as “mobile” as smartphones? Market researchers say yes, but ad players think it’s controversial’, October 1, 2014, Adweek. http://www.adweek.com/ news/advertising-branding/are-tablets-just-mobile-smartphones-160457, accessed 1 May 2016; 510 SAGE Publications: Maguire, L., ‘Capturing consumption emotions in service encounters: Why immediacy matters when studying service-related emotions’, International Journal of Market Research 58 (2), (2016), 227–52; 511–512 ESOMAR: ESOMAR, ‘ESOMAR Guidelines for conducting mobile market research’ 2012, https://www.esomar. org/uploads/public/knowledge-and-standards/codes-and-guidelines/ESOMAR_Guideline-for-conducting-MobileMarket-Research.pdf, accessed 1 May 2015; 513 The Market Research Society: MRS, ‘Mobile research guidelines’ 2013, https://www.mrs.org.uk/pdf/2013-08 30%20Draft%20AMSRS%20CASRO%20MRS%20Mobile%20 Research%20Guidelines.pdf, accessed 1 May 2016; 514 ESOMAR: Tenzer, J. and Crysell, A., ‘Coming of age on screens: How Facebook explored what it’s like to grow up in today’s world’, ESOMAR Congress, Dublin
(September 2015); 533 Jamie Goldfarb: Jamie Goldfarb, Senior Researcher for Princess Cruises; 825 QuinStreet Inc.: Pearlman, E., ‘Robert I. Sutton: Making a case for evidence-based management’, (2006), CIO Insight. http:// www.cioinsight.com/c/a/Expert-Voices/Robert-I-Sutton-Making-a-Case-for-EvidenceBased-Management, accessed 3 May 2016; 826 Graphics Press LLC: Tufte, E., The Cognitive Style of PowerPoint, 2nd edn (Cheshire, CT: Graphics Press, 2006); 827 WARC: Saxton, G. and Davidson, A., ‘The business of storytelling with qualitative research’, Market Research Society: Annual Conference, (2009); 841 ABC News Internet Ventures: Aschwanden, C., ‘Not even scientists can easily explain p-values’, (2015), FiveThirtyEight. http://fivethirtyeight.com/features/ not-even-scientists-can-easily-explain-p-values/, accessed 3 May 2016; 848 Houghton Mifflin Harcourt: Dibb, S., Simkin, L., Pride, W.M. and Ferrell, O.C., Marketing: Concepts and Strategies, 4th edn (Boston: Houghton-Mifflin, 2000), 158; 848 John Wiley & Sons Inc.: Ford, D., The Business Marketing Course: Managing in Complex Networks (Chichester: Wiley, 2002); 849 SAGE Publications: Webster, F.E. Jr, ‘Management science in industrial marketing’, Journal of Marketing 42 (January 1978), 22; 849 John Wiley & Sons Inc.: Ford, D., Gadde, L.E., Hakansson, H. and Snehota, I., Managing Business Relationships, 2nd edn (Chichester: Wiley, 2003), 38; 851 Elsevier: Hakansson, H. and Snehota, I., ‘No business is an island: The network concept of business strategy’, Scandinavian Journal of Management 14 (3), (1990), 177–200; 852 SAGE Publications: Webster, F.E. Jr and Wind, Y., ‘A general model of organizational buying behaviour’, Journal of Marketing 36 (2), (1972), 12–19; 855 WARC: McPhee, N., ‘Is there a future for “real” qualitative market research interviewing in the digital age?’, ESOMAR Congress Odyssey, Athens (September 2010); 859 IAG Cargo: IAG Cargo’s mission statement; 866 The New York Times Company: Penenberg, Adam and Barry, Marc. (2000), The Pizza Plot, December 3, 2000, The New York Times Company; 872 Ray Poynter: Poynter, R., ‘It’s time for market research to join the 21st Century’, personal blog, available at: http:// raypoynter.com/it%E2%80%99s-time-for-market-research-to-join-21st-century/, accessed 3 May 2016; 873 Saul McLeod: McLeod, S., . The Milgram shock experiment. accessed 3 May 2016, Simply Psychology. https://www. simplypsychology.org/milgram.html; 875 The Market Research Society: MRS Code of Conduct 2009; 875 ESOMAR: ESOMAR Codes & Guidelines 2019; 876 ESOMAR: ‘ESOMAR Financial Report 2014’, https://www. esomar.org/about-esomar/financial.php, accessed 3 May 2016; 876 ESOMAR: ESOMAR News, ‘It’s here: What the new EU Data Protection law means for market research’, December 18, 2015, ESOMAR . https://www.esomar. org/utilities/news-multimedia/news.php?idnews=195, accessed 3 May 2016; 887, 889 The Market Research Society: MRS Code of Conduct 2014; 890 Facebook, Inc.: Facebook’s terms and policies; 890 Twitter, Inc.: Twitter’s privacy policies; 890 Microsoft Corporation: LinkedIn privacy policies; 890 Pinterest, Inc.: Pinterest’s Business Terms of Service; 891 Amazon, Inc.: Amazon.com, Inc.; 892 SAGE Publications: Griffiths, J., ‘Viewpoint –MR confidential: Anonymity in market research’, International Journal of Market Research Vol. 50 Issue 6 (2008), 717–18; 896 The Market Research Society: The Market Research Society’s website, https://www.mrs.org.uk/.
Photo credits:
1 Shutterstock: PureSolution/Shutterstock; 3 Alamy Stock Photo: dennizn/Alamy Stock Photo; 4 123RF: Tonobalaguer/123RF; 13 123RF: yelenayemchuk/123RF; 20 Shutterstock: ClassyPictures/Shutterstock; 26 123RF: Stepan Popov/123RF; 28 Shutterstock: Angelina Dimitrova/Shutterstock; 32 Shutterstock: viki2win/ Shutterstock; 35 Shutterstock: DeymosHR/Shutterstock; 47 Shutterstock: Antonio Guillem/Shutterstock; 53 Shutterstock: SB Professional/Shutterstock; 58 123RF: Juri Semjonow/123RF; 65 123RF: Auremar/123RF; 68 123RF: Sergey Ryzhov/123RF; 84 123RF: nicoelnino/123RF; 87 123RF: tanaonte/123RF; 101 Shutterstock: Wellphoto/Shutterstock; 110 123RF: Grosescu Alberto/123RF; 115 123RF: wdnet/123RF; 117 Shutterstock: sitthiphong/Shutterstock; 125 Shutterstock: Stephen Coburn/Shutterstock; 128 123RF: rawpixel/123RF; 132 Shutterstock: chrisdorney/Shutterstock; 136 Shutterstock: Jeffrey B. Banke/Shutterstock; 141 123RF: Katarzyna Białasiewicz/123RF; 147 Shutterstock: Catherine Murray/Shutterstock; 158 Shutterstock: SvetlanaFedoseyeva/ Shutterstock; 163 Shutterstock: AMC Photography/Shutterstock; 173 Shutterstock: Photographee.eu/ Shutterstock; 175 Shutterstock: Richard Peterson/Shutterstock; 186 Shutterstock: Marcio Eugenio/Shutterstock; 189 Shutterstock: Rawpixel.com/Shutterstock; 201 Shutterstock: Adam Gregor/Shutterstock; 209 Shutterstock: Hellen Grig/Shutterstock; 214 Shutterstock: Stephen Rees/Shutterstock; 216 Pearson Education Ltd: Ann Cromack/ Ikat Design/Pearson Education; 227 123RF: swavo/123RF; 236 Shutterstock: wavebreakmedia/Shutterstock; 249 Shutterstock: threerocksimages/Shutterstock; 250 Shutterstock: ashadhodhomei/Shutterstock; 261 Shutterstock: zimmytws/Shutterstock; 265 123RF: Antonio Balaguer Soler/123RF; 272 Shutterstock: Gorodenkoff/Shutterstock; 284 Shutterstock: Amy Johansson/Shutterstock; 296 123RF: Bakhtiar Zein/123RF; 301 Shutterstock: Ollyy/Shutterstock; 308 Shutterstock: Gyn9037/Shutterstock; 316 Shutterstock: Hairem/Shutterstock;
327 Shutterstock: Robnroll/Shutterstock; 333 Shutterstock: Kzenon/Shutterstock; 343 Shutterstock: Zimmytws/ Shutterstock; 355 Shutterstock: Bloomicon/Shutterstock; 365 Shutterstock: KRie/Shutterstock; 376 Shutterstock: Shutterstock; 382 Shutterstock: JohnKwan/Shutterstock; 392 Shutterstock: Fasttailwind/Shutterstock; 403 Shutterstock: Vlue/Shutterstock; 420 Shutterstock: Ivosar/Shutterstock; 421 Pearson Education Ltd: Cheuk-king Lo/Pearson Education; 425 Shutterstock: Arek_malang/Shutterstock; 435 Shutterstock: Alexskopje/Shutterstock; 437 Shutterstock: Andrey_Popov/Shutterstock; 449 Shutterstock: 4634093993/Shutterstock; 452 Shutterstock: M. Schuppich/Shutterstock; 461 Shutterstock: Pixsooz/Shutterstock; 471 Shutterstock: Loannis Pantzi/Shutterstock; 474 Shutterstock: Rido/Shutterstock; 476 Shutterstock: Simon_g/Shutterstock; 481 123RF: Cathy Yeulet/123RF; 485 Shutterstock: Wachiwit/Shutterstock; 487 Shutterstock: Fasttailwind/Shutterstock; 491 123RF: Stas11/123RF; 505 123RF: Andriy Popov/123RF; 508 123RF: Siuwing/123RF; 511 Shutterstock: Angela Waye/Shutterstock; 517 123RF: dolgachov/123RF; 520 Shutterstock: William Perugini/Shutterstock; 525 Shutterstock: Gergo Orban/ Shutterstock; 533 Shutterstock: NAN728/Shutterstock; 536 Shutterstock: Olivier Le Queinec/Shutterstock; 548 123RF: vizafoto/123RF; 549 Shutterstock: Zimmytws/Shutterstock; 565 Shutterstock: Aastock/Shutterstock; 577 Pearson Education Ltd: Debbie Rowe/Pearson Education; 593 Shutterstock: Denis Pepin/Shutterstock; 594 Shutterstock: Vladimir Wrangel/Shutterstock; 601 Shutterstock: Kzenon/Shutterstock; 609 Shutterstock: FotoDuets/Shutterstock; 624 Shutterstock: pogonici/Shutterstock; 625 Alamy Stock Photo: Lou Linwei/Alamy Stock Photo; 643 Shutterstock: iconspro/Shutterstock; 651 Shutterstock: Jannarong/Shutterstock; 665 123RF: sirylok/123RF; 672 Shutterstock: Sinisa Botas/Shutterstock; 677 Shutterstock: CandyBox Images/Shutterstock; 686 Pearson Education Ltd: Sian Bradfield/Pearson Education; 699 Shutterstock: LANBO/Shutterstock; 706 Shutterstock: Kkulikov/Shutterstock; 718 Shutterstock: Bikeworldtravel/Shutterstock; 720 Pearson Education Ltd: Studio 8/Pearson Education; 727 123RF: almoond/123RF; 728 Shutterstock: Johan Swanepoel/ Shutterstock; 744 Shutterstock: Doug Stevens/Shutterstock; 747 Shutterstock: Gunnar Pippel/Shutterstock; 754 Shutterstock: trendywest/Shutterstock; 756 Shutterstock: igor.stevanovic/Shutterstock; 771 Shutterstock: Michael J Zittel/Shutterstock; 779 Shutterstock: Catalin Petolea/Shutterstock; 787 Shutterstock: alphaspirit/Shutterstock; 788 Pearson Education Ltd: Naki Kouyioumtzis/Pearson Education; 801 Shutterstock: Mark Herreid/Shutterstock; 810 Shutterstock: ariadna de raadt/Shutterstock; 823 Shutterstock: Tyler Olson/Shutterstock; 828 Shutterstock: Tan Kian Khoon/Shutterstock; 834 Shutterstock: Roger Asbury/Shutterstock; 839 Shutterstock: Tyler Olson/ Shutterstock; 845 123RF: Nataliya Hora/123RF; 850 Shutterstock: kubais/Shutterstock; 857 Shutterstock: Shutterstock; 860 123RF: Stephen Clarke/123RF; 871 Shutterstock: Icatnews/Shutterstock; 876 Shutterstock: Vector Plus Image/Shutterstock; 880 123RF: Wbraga/123RF; 892 Shutterstock: Tyler Olson/Shutterstock; 894 123RF: fabio formaggio/123RF.
Dr Daniel Nunan is Reader in Marketing and Head of the Department of Marketing in the Faculty of Business & Law at the University of Portsmouth. Previously, he was a member of faculty at Birkbeck, University of London and Henley Business School, University of Reading and also held visiting positions at Kings College London and Cranfield School of Management. Since 2019, Dan has served as an Editor in Chief of the International Journal of Market Research. His work has been published in leading journals including the Journal of Management Studies, Journal of Business Ethics, Journal of Public Policy & Marketing, European Journal of Management, Journal of Small Business Management and Industrial Marketing Management, New Technology, Work and Employment, and the Journal of Marketing Management. Dan is a Fellow of the Higher Education Academy and the Royal Statistical Society. He has twice been nominated for the MRS Silver Medal and won the 2012 MRS Award for Innovation in Research Methodology. Prior to his academic career Dan held a number of senior commercial roles in the financial services and technology sectors.
Professor David F. Birks is Emeritus Professor of Marketing at the University of Winchester. Previously he served as Dean of the Faculty of Business, Law and Sport and Director of Winchester Business School. Prior to working at Winchester, David worked at the Universities of Southampton, Bath and Strathclyde. David has over 30 years’ experience in universities, primarily working on postgraduate research, marketing, management and design programmes. David is a committee member of the Association for Survey Computing (ASC), the world’s leading society for the advancement of knowledge in software and technology for research surveys and statistics. He has continued to practise marketing research throughout his university career, managing projects in financial institutions, retailers, local authorities and charities.
Dr Naresh K. Malhotra is Senior Fellow, Georgia Tech CIBER and Regents’ Professor Emeritus, Scheller College of Business, Georgia Institute of Technology, USA. He has published more than 135 papers in major refereed journals, including the Journal of Marketing Research, Journal of Consumer Research, Marketing Science, Management Science, Journal of Marketing, Journal of Academy of Marketing Science, Journal of Retailing, Journal of Health Care Marketing and leading journals in statistics, management science, information systems and psychology. He was Chairman, Academy of Marketing Science Foundation, 1996–1998, and was President, Academy of Marketing Science, 1994–1996 and Chairman, Board of Governors, 1990–1992. He is a Distinguished Fellow of the Academy and Fellow of the Decision Sciences Institute. He is the founding Editor of Review of Marketing Research and served as an Associate Editor of Decision Sciences for 18 years. His book entitled Marketing Research: An Applied Orientation has been translated into eight languages and is being used in over 100 countries. Dr Malhotra has consulted for business, non-profit and government organisations in the USA and abroad and has served as an expert witness in legal and regulatory proceedings. He is the winner of numerous awards and honours for research, teaching and service to the profession.
Stage 1
Problem definition
Stage 2
Research approach developed
Stage 3
Research design developed
Stage 4
Fieldwork or data collection
Stage 5
Data integrity and analysis
Stage 6
Communicating research findings
Marketing
supports decision making through collecting, analysing and interpreting information to identify and solve marketing problems.
Source: PureSolution/Shutterstock
After reading this chapter, you should be able to:
1 understand the nature and scope of marketing research and its role in supporting marketing decisions;
2 describe a conceptual framework for conducting marketing research, as well as the steps in the marketing research process;
3 distinguish between problem-identification and problem-solving marketing research;
4 appreciate the impact that technology is having on the marketing research industry;
5 understand the types and roles of research suppliers, including internal and external, full-service and limited-service suppliers;
6 appreciate the skills that researchers will need to succeed in the future world of marketing research.
When you hear the term marketing research what activities come to mind? People with clipboards stopping you on the street to ask for your opinion? Reading the results of a political opinion poll in the news? An email asking you to complete a customer satisfaction survey from a restaurant you have visited? All of these activities represent traditional types of marketing research activities, but they don’t even begin to capture the range and breadth of activities that encompass marketing research today. At its core, marketing research is about using research techniques to generate insights about consumers that support the marketing decisionmaking process. Marketing research plays a key role in contemporary business success. For companies who fail to understand their customers the consequences are serious. Recent studies have shown that the most common reason that new businesses fail is a lack of ‘product-market fit’. 1 In other words, through having failed to understand the market they are addressing, the companies have developed a product or service for which there was insufficient demand.
In this chapter, we introduce the concept of marketing research, emphasising its key role in supporting marketing decision making. We discuss formal definitions of marketing research and show how these link to a six-stage description of the marketing research process. This description is extended to illustrate many of the interconnected activities in the marketing research process. We then subdivide marketing research into two areas: problem-identification and problem-solving research. Finally, an overview of the global marketing research sector is provided, including details of expenditure and key research firms.
The marketing research sector (also known as the market research or insight sector – we cover the different use of these terms later in this chapter) is going through a huge period of change. Much of this change derives from adoption of new technologies. The growth in internet-based communication, the shift to mobile computing and the emergence of ‘big data’ have raised questions over whether traditional research techniques still work. However, technology is not the only source of change. It is getting more difficult to persuade people to take part in research, due to concerns over personal data and ‘survey fatigue’ driven by an over-use of surveys. However, change also brings opportunity. There is a huge innovation in research techniques including those carried out through social media research, research based on images and video and the emergence of automated research driven by AI (artificial intelligence). Above all, with organisations being awash with data, the need for researchers skilled in being able to turn these data into useful – and actionable – insight has become a valued skill.
The term ‘marketing research’ is broad in meaning and application. This breadth will be explored and illustrated throughout this chapter. What will become apparent is that it is related to supporting marketing decision making in many traditional and new ways. The following examples illustrate some of the different contexts in which marketing research can be applied.
Evans Cycles, a leading bicycle retailer, wanted to take advantage of the potential for the emerging market for electric bicycles. An electric bicycle, or e-bike, is a bicycle with a small built-in electric motor. Whilst the rider still needs to pedal, the motor provides assistance to reduce the effort required to cycle, particularly uphill. The challenge was identifying a market for this application of new technology to a familiar product.2
To address this marketing problem Evans Cycles first used data from consumer-focused strategy tool Hitwise AudienceView to identify potential audiences. Following this, online qualitative research was carried out identifying the potential market for e-bikes as being men over 35. Within this two potential consumer needs were identified: people wanting to keep riding as they got older, and commuters wanting a way to have a healthy way to get to work without the physical effort of normal cycling. These insights were used to develop an online video campaign that resulted in widespread coverage and an ROI (return on investment) of nearly 800%.3
Steve Jobs, Apple CEO and founder, was one of the most influential business leaders of modern times. Through innovations such as the iPhone and iPad he grew Apple from a struggling computer maker to become the world’s most highly valued company. He was also renowned for claiming that market research was not effective at Apple. He was famously quoted as saying:
Some people say, ‘Give the customers what they want.’ But that’s not my approach. Our job is to figure out what they’re going to want before they do. I think Henry Ford once said, ‘If I’d asked customers what they wanted, they would have told me, “A faster horse!”’ People don’t know what they want until you show it to them. That’s why I never rely on market research. Our task is to read things that are not yet on the page.4
Many people will use this quote from Steve Jobs when criticising market research. However, it doesn’t quite tell the whole story. Information that came to light after Steve Jobs’ death found that Apple carried out a lot of market research to better understand what customers thought about both its products and competitors.5 As it turns out, what Steve Jobs was talking about was the role of focus groups in developing completely new and innovative products, such as the iPhone, where a customer lacks knowledge of what the product can actually do.
London’s bus network is one of the world’s largest, carrying more than 6.5 million passengers each day using a fleet of over 8,600 (mostly red) buses. The network is overseen by Transport for London (TfL) and keeping so many customers happy is not an easy job. TfL relies on research to make sure it understands the customer experience. TfL realised that, despite major investment, thousands of customers were contacting it each month to complain about the service received. Working with agency research partners, TfL was able to bring together data from a wide range of sources including complaints data, social media analysis, customer satisfaction surveys, customer experience ethnographies, driver depth interviews and observations and bus staff surveys.
Analysis of this data, particularly that of social media data, found that customers viewed their interactions with employees as nearly as important as the reliability of bus services or the range of routes offered. Many complaints were due to bus drivers not always stopping when expected or poor communication when something went wrong, such as a delay or disruption. On the other hand, analysis of employee data showed that bus drivers viewed their role as functional – simply driving the bus!
Research identified the disconnect, which was then addressed via a series of workshops to help bus drivers understand the importance of customer experience and develop customer service skills. Follow-up research six months later indicated that the workshops had significantly increased employees’ engagement with customers.6
These examples illustrate the variety of methods used to conduct marketing research, which may range from highly structured surveys with large samples to open-ended, in-depth interviews with small samples; from the collection and analysis of readily available data to the generation of ‘new’ quantitative and qualitative data; from personal face-to-face interactions to remote observations and interactions with consumers via the internet; from small local studies to large global studies. As is best highlighted by the case of Apple, marketing research techniques can’t be used to solve all business problems, but every company, even Apple, has a place for marketing research. This book will introduce you to the full complement of marketing research techniques and challenges. These examples also illustrate the crucial role played by marketing research in designing and implementing successful marketing plans. This book will introduce you to a broad range of marketing applications supported by marketing research.
The role of marketing research can be better understood in light of a basic marketing paradigm depicted in Figure 1.1. The emphasis in marketing, as illustrated in the TfL example above, is on understanding customer experiences and the delivery of satisfaction. To understand customer experiences and to implement marketing strategies and plans aimed at delivering satisfying experiences, marketing managers need information about customers, competitors and other forces in the marketplace. In recent years, many factors have increased the need for more accurate and timely information. As firms have become national and international in
Macroenvironmental factors
• Economy
• Technology
• Competitors
• Legal and political
• Social and demographic
Marketing managers
• Market segmentation
• Target market selection
• Marketing programmes
• Performance and control
Controllable marketing variables
• Product
• Pricing
• Promotion
Exchange of values
• Distribution
Microenvironmental
• Family
• Peer groups
• Opinion leaders
• Consumers
• Employees
• Shareholders
• Suppliers
Time
Customer behaviour, satisfaction, loyalty
Marketing research support:
• The nature and scope of target markets
• The forces that shape the marketing system
• Evaluate marketing mix variables
• Evaluate successes and failures of marketing decisions
scope, the need for information on larger and more distant markets has increased. As consumers have become more affluent, discerning and sophisticated, marketing managers need better information on how they will respond to new products and other new experiences. As competition has become more intense, managers need information on the effectiveness of their marketing tools. As the environment is changing more rapidly, marketing managers need more timely information to cope with the impact of these changes.
Marketers make decisions about what they see as potential opportunities and problems, i.e. a process of identifying issues. They go on to devise the most effective ways to realise these opportunities and overcome problems they have identified. They do this based on a ‘vision’ of the distinct characteristics of the target markets and customer groups. From this ‘vision’ they develop, implement and control marketing programmes. This ‘vision’ of markets and subsequent marketing decisions may be complicated by the interactive effects of an array of environmental forces that shape the nature and scope of target markets. These forces also affect the marketers’ ability to deliver experiences that will satisfy their chosen target markets. Within this framework of decision making, marketing research helps the marketing manager link the marketing variables with their environment and customer groups. It helps remove some of the uncertainty by providing relevant information about marketing variables, environment and consumers.
The role of the researcher in supporting the marketing decision maker can, therefore, be summarised as helping to:
• describe the nature and scope of customer groups;
• understand the nature of forces that shape customer groups;
• understand the nature of forces that shape the marketer’s ability to satisfy targeted customer groups;
• test individual and interactive variables that shape consumer experiences;
• monitor and reflect upon past successes and failures in marketing decisions.
Traditionally, researchers were responsible for designing and crafting high-quality research and providing relevant information support, while marketing decisions were made by the managers. However, in modern fast-moving organisations, distinction between these roles has become blurred. Researchers are becoming more aware of decision making; conversely,
marketing managers are becoming more aware of research and the use of an eclectic array of data sources that can support their decision making. This trend can be attributed to better training of marketing managers and advances in technology; the advances in technology are a theme that we will discuss in more detail throughout the text. There has also been a shift in the nature and scope of marketing research. Increasingly marketing research is being undertaken not only on an ongoing basis but on a ‘real-time’ basis, rather than a traditional notion of research being in response to specific marketing problems or opportunities.7 Major shifts are occurring in the marketing research industry that are impacting upon the perceived nature and value of marketing research. The nature of these shifts and their impact upon new approaches to marketing research will be addressed later in this chapter. The current and developing role of marketing research is recognised in its definition.
While the term ‘marketing research’ is relatively recent, the concepts that underlie it are not new. As long as the opinions of the public have mattered, and traders have had a need to improve their sales, some form of research has been undertaken. The bustling markets of ancient Rome have been characterised as a market economy, with traders seeking competitive advantage while dealing with suppliers, farmers and craftsmen in distant lands. As today, information on the prices consumers were willing to pay for certain products was valuable to traders and considerable effort was spent on gathering and exchanging such information.8 Even many modern research techniques have origins far into the past. The Domesday Book, a research project completed in 1086 for the English King William the Conqueror, contained details of land holdings in England and Wales. Perhaps Europe’s oldest and most valuable statistical document, the original, and less ominous, name of the book was descriptio – the Latin word for ‘survey’.
Examples of modern research techniques can be found in the use of opinion polls in the USA in the 1820s. Questionnaires were being used widely to gauge consumer opinion of advertising as early as the 1890s.9 Use of market research began to become widespread from 1910–20 and it is generally accepted that the marketing research industry was well embedded in commercial life by the 1930s.10 Thus, when professional associations such as ESOMAR or the UK’s market research society (MRS) were established in the late 1940s, it didn’t represent the beginning of marketing research but rather the capstone on a longer period of development.
The important point here is that marketing research has been a well-established part of commercial life for more than 100 years. It has successfully navigated the huge social, political and economic changes facing the world over this period and has continued to prosper. From television to the internet, marketing research has adapted to each new set of technologies, while the key focus on producing high-quality actionable research, and doing so with integrity, has remained.
You might ask why we need a definition of marketing research – isn’t it obvious? The challenge is that when many managers think about marketing research, they focus on the data collection aspects of research. This ignores the importance of a wider research process and doesn’t tell us how marketing research might differ from other marketing activities. To understand these issues we can review two common definitions of marketing research. You might note that the first definition uses the term ‘market research’, while the second talks about ‘marketing research’; we will come back to this point later in this section. The first is from
Having to weight a shallow metal base to support a 4-ft. brass tube, I found that the easiest way was to fasten four screws on the base with nuts, as shown in the illustration, and pour in lead. The screws were taken out in polishing the base.—James M. Kane, Doylestown, Pa.
¶In toasting bread over a camp fire, it is best to cover the fire with a tin pan.
Mechanics, engineers, and other persons are sometimes engaged in work which keeps them at the same locality only a few months. Those who desire to carry with them a small library will find the trunk bookcase, as shown, convenient. It may be shipped as a trunk, and used as a bookcase in one’s hotel or dwelling. Other articles than books may be packed in it. The outside dimensions when closed are 31 by 18 by 18 in., providing for three shelves. It may be made of ³⁄₄in. pine or whitewood, and stained, or covered with impregnated canvas. The outer corners are reinforced with metal corner plates, and suitable hardware is provided.—Lloyd C. Eddy, Jr., Buffalo, N. Y.
Two metal pipe straps, fitted around the neck of a bottle and bolted together, form a convenient method of attaching a carrying handle to a large bottle. The handle proper is made by fixing a grip in a bail of wire similar to that on a bucket.
An appliance that saves time for the worker in a photographic dark room is a tray rocker, made as follows: Fasten a bracket of strap iron, into which are riveted the pointed ends of two spikes, to the under side of a board, as shown in the detail sketch. Support this further with a double angle fastened at the end of the board. Fix a small can, weighted with lead, on the end of an iron rod, adjusted to a suitable curve, and fasten the rod to the bracket. The weighted end should extend under the edge of the table, as shown, and be balanced so that it will rock the board and tray without tipping the latter toward the bracket. The nails pivot on metal pieces, to protect the table top.—L. L. Llewellyn, Piedmont, Calif.
A saving of space and time was effected in a home kitchen by the use of a sink developed in a large kitchen. Two ordinary laundry tubs were installed with the faucets raised above the tubs, as shown. A sink of sheet zinc was fitted in the upper part of one tub; it has handles, and a strainer set in the bottom. The strainer is closed by a rubber stopper, and the sink becomes a dishpan. The sink is easily lifted out for cleaning, or for washing clothes. Another use for the sink, between meals, is for washing and preparing vegetables and
fruits. The second tub has a wire dish-draining rack, in which the china is rinsed and sterilized by hot water from the faucet.—Mrs. Avis Gordon Vestal, Chicago, Ill.
An artistic and useful bookmark was made from a silk ribbon passed through a buckle of leather, tooled with an inscription and a
A J G B W T L I B T M T Gconventional design. Ribbon of various sizes may be used, and the leather left plain if desired. The ends of the ribbon are fringed, as shown. Monograms make interesting and individual decorations for the leather portion.—Will Chapel, Manchester, Ia.
An oarlock that will give considerable service may be made by fixing a loop of rope to the gunwale of a boat at the proper position. This kink is useful in an emergency, such as when an oarlock is dropped overboard.
Boys who make thin sticks for arrows, kites, etc., as well as the mechanic, can make good use of the following suggestion: The difficulty of handling thin strips while planing them may be overcome by setting the strip in the groove of a piece of flooring, clamped in a vise. A peg or nail is driven into the groove and acts as a stop for the end of the strip.
Submarine photography should have great attractions for amateur photographers who have access to lakes, ponds, and other clear waters. While more careful work is demanded than in ordinary photography, the method of obtaining good results is not difficult, and the necessary equipment may be provided by constructing the device shown in the illustration. Submarine pictures can be taken in a considerable depth of water, providing it is reasonably free from foreign matter. This is a fascinating field of photography, and many pictures of educational and scientific value remain to be made of under-water life. The illustration shows the detailed construction of the camera chamber, and the method of suspending it from a bridge, or other place convenient to the body of water. Reproduced in the oval panel is a photograph of fish near baited hooks, on a fishline. The original was made from a negative exposed by the use of the camera chamber described.
The problem of making photographic exposures under water involves the provision of a strong water and pressure-proof container for the camera, a means for controlling the shutter, and a suitable opening in the container through which the exposures may be made. The arrangement described combines these features in a simple manner, and by the use of materials that can be obtained without difficulty. It was made for a camera taking 4 by 5-in. pictures, and the
dimensions given are for a container for this size. The dimensions may be varied to adapt the device to various cameras, within reasonable limits. A 9-in. steel pipe was used for the chamber, and its ends were fitted with pipe caps. A heavy piece of plate glass was fitted into the forward cap, which was cut into the shape of a ring, to provide the exposure opening. The general arrangement of the camera in the chamber is shown in the sectional view, Fig. 1, as seen from the shutter end. The electrical device, by which the shutter is controlled, is shown in this view, and in Fig. 2 it is shown in detail.
The chamber was made as follows: A section of 9-in. steel pipe was cut to a length of 11¹⁄₂ in. and threaded on the ends to fit pipe caps. The forward pipe cap was chucked up in a lathe and the center portion cut away, to provide an exposure opening and a shoulder at the rim, on which the plate-glass window rests. A graphite paint was applied to the rim, then the glass was bedded solidly in it, and a rubber gasket was fitted to the joint, making it waterproof when the cap was drawn up tightly. The chamber assembled and in detail is shown in the illustration.
Holes were bored into the top of the chamber, and eyebolts were fitted into them. Between the eyebolts a hole was bored and fitted with a water-tight collar, through which the wires leading to the shutter-control device pass. The chamber is supported by the wires, which are fixed to the eyebolts and secured at the base of operations by the photographer.
A support for the camera was provided by bending a strip of ¹⁄₈ by 1-in. band iron to the shape indicated in Fig. 1, at A, and riveting it to the bottom of the chamber. Its upper surface is flat and was bored and threaded to fit the tripod thumbscrew B, on the lower surface of the camera. The camera is arranged on the support and clamped into place firmly by the thumb nut, as it might be on a tripod. The adjustment of the camera in the chamber is done from the rear, and the space beneath the thumbscrew should be large enough to make access easy. A camera of the size indicated, when fitted with its lens centering on the center of the window, will be raised sufficiently for convenience in clamping it. The threads on the back cap must fit snugly and no paint must be used on them. Hard oil, or vaseline,
may be applied to insure a water-tight joint that permits easy removal of the cap.
The making and adjustment of the electrical shutter device requires care, but its operation is simple. An electromagnet, of the type used on doorbells, was fixed to the front of the camera, above the shutter, as shown in Fig. 1, and in detail in Fig. 2. It is actuated by current from two dry cells. The latter are kept in a convenient carrier at the base of operations, and are connected to the magnet by a single strand of double, waterproof wire. This is spread as it reaches the chamber and fastened to the two eyebolts in the top. The ends of the wires are conducted through the water-tight center opening between the eyebolts, and attached to the magnet. The release lever is fitted to a steel hook, pivoted at its upper end with a small nail, C, Fig. 2. A rubber band is fixed to the lower edge of the shutter lever and its other end is attached to the front of the camera. When the current is permitted to flow into the magnet by pressing a contact key, in the hand of the operator, the steel hook is drawn from the release lever, and the rubber band draws the lever down, making an exposure.
The double-wire cable carries the current as well as holds the chamber suspended in the water. The wire should be about 25 ft. long, and, in transporting the outfit, or when only partly used, is coiled. The chamber should be completed for picture-taking operations by giving it a coat of dull, black waterproof paint, both inside and outside. This will prevent rusting and also serves to make the object inconspicuous when in the water. It is important that the interior be painted in this manner, because reflections of light within the chamber may cause difficulty in obtaining satisfactory results. When the paint is thoroughly dry, the device may be tested for leakage and assembled ready for a test before making an actual trial in the water. The camera is fitted into the chamber so that it centers on the center of the plate-glass window, and is clamped into place. If the electrical device operates satisfactorily the plate may be inserted, the plate-holder slide withdrawn, the back cap replaced securely, and the outfit lowered into the water. It should be watched carefully until it reaches the proper depth, for, if it is permitted to touch the bottom, the sediment stirred up must be given time to settle before
an exposure is made. The forward end of the chamber should be marked on its upper edge with a streak of white paint, to aid in identifying it at considerable depth in the water. This is important, since the operator must shift the chamber carefully until the window faces the objects to be photographed. When the chamber is in position, the contact key is pressed and the exposure is made.
The time of exposure for under-water photography depends on the clearness of the water, the depth at which the pictures are to be taken, and the light conditions on the surface. A bright day is, of course, desirable for this class of photography A safe approximation on a sunny day, in clear water, and with the chamber lowered to a depth of 20 ft., is ¹⁄₂₅ sec. at the F 8 stop. The fastest plates or films obtainable should be used for this work, making possible a fairly rapid shutter speed. This tends to overcome the movement of the subject and possible movement of the camera.
The camera should be focused while in the chamber in order that the plate glass may not disturb the focus. The glass usually changes the focal length of the lens slightly, hence this precaution must be taken. The camera should be focused in the chamber for a distance of 10 ft., as this is the average at which under-water photographs will be taken ordinarily.
When attempting under-water photography in cloudy waters, or at a considerable depth, the necessary illumination may be provided by a charge of flash-light powder. For this purpose another submarine chamber, similar to that used for the camera, should be provided, with a plate glass, ¹⁄₂ in. thick, and a valve fitted into the top of the chamber, and opening outward, so that the gas may escape. Fifteen grains of powder will suffice, and this should be set off by a small electrical fuse connected to the current supply
F . 2
Photographing Subjects under Water Is a Fascinating Diversion, and Each Exposure Has an Element of Mystery in the Uncertainty of the Result The Photograph Reproduced in the Oval was Taken with the Outfit Shown. The Construction of the Chamber is Shown at the Middle. Fig. 1 Shows a Sectional Interior View, and Fig. 2, a Detail of the Electrical Shutter Release
Every pond, lake, and river abounds in interesting and instructive subjects for submarine photography. Along the coast of Florida, and at many points along the Pacific coast, are waters of such clearness that pictures may be taken at a depth of nearly a hundred feet, without the use of artificial illumination. These localities abound in objects under water of great interest, such as shipwrecks. The fascinating art of taking pictures under water does not make it necessary for one to go to these places, for subjects are easily available. Whenever the submarine chamber is raised from the water there is an element of mystery involved, regarding what may be recorded on the plate or film, and this is an attractive feature of the diversion.